Bharti Airtel has reportedly embarked on refarming its 4G spectrum to boost 5G coverage and capacity in rural (B&C) circles, anticipating a surge in demand in 2025. The telco plans to utilise 2300 MHz, 1800 MHz, and 900 MHz bands for this initiative, aiming to optimise both costs and spectrum resources as part of its spectrum resources optimisation strategy, ET reported, citing sources.
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Airtel's 5G Strategy for Rural Areas
In a cost-saving move, Airtel is reportedly upgrading existing 4G base stations with software to emit 5G signals, significantly reducing costs. Converting a 4G base station into a 5G one costs USD 1,000-1,500, compared to USD 20,000 for a new 5G station using C-band spectrum. The company's largest spectrum holdings are in the 2300 MHz and 1800 MHz frequencies.
"The Sunil Mittal-led telco is also going for mass software upgrades to convert its maze of 4G base stations in these markets to emit 5G signals at virtually 1/13th-1/20th of the cost of investing in new 5G base stations running on 3.5 GHz airwaves, known as C-band 5G spectrum," the report cited people familiar with the matter as saying.
"Airtel is looking to optimise costs and airwave resources by selectively beefing up 5G network capacity and coverage in the B&C circles by refarming select 4G mid-bands where it has the fattest spectrum holdings," the report cited one of the people as saying.
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Partnerships with Nokia and Ericsson
Airtel has also increased its spectrum holdings, particularly in the 900 MHz band, to bridge 5G coverage gaps. The company has entered into multi-year contracts with Nokia and Ericsson to extend 4G and 5G services and accelerate its move toward 5G-Advanced, as TelecomTalk previously reported.
Airtel plans to use its airwaves in the 2100 MHz and 900 MHz bands primarily for 4G expansion and the 26 GHz band for 5G-based fixed wireless access (FWA) services. According to the report, a slice of the 900 MHz spectrum will also be refarmed to bridge 5G coverage gaps in the markets where Airtel is seeing a demand for 5G via upgrades from 4G. There are a total of 14 markets under the B&C circle categories. Key circles include Punjab, UP-East, UP-West, Haryana, Kerala, Rajasthan, MP, West Bengal, Bihar, Odisha, Assam and Northeast.
Also Read: Airtel Expands FWA Coverage in Q2FY25 and Optimises CPE Costs
Airtel's 5G Penetration
Airtel's 5G user base reached 105 million in Q2FY25, with a 30 percent penetration rate. The company expects continued growth as budget 5G smartphones become more widely available. While it currently offers 5G using the non-standalone (NSA) mode, Airtel plans to migrate to standalone (SA) mode in 3-4 years, requiring additional investments of Rs 30,000-40,000 crore, according to the report.
TelecomTalk has previously reported on Airtel's 5G SA and FWA strategy. The operator expanded its 5G FWA in the previous quarter and is already offering 5G SA services to some enterprises. However, the telco plans to provide FWA services on the 5G SA network while gradually transitioning from NSA to SA over the next 4-5 years for mobile services.
